In the previous problem, if the SEC filing fee and associated administrative expenses of the offering are
Question:
In the previous problem, if the SEC filing fee and associated administrative expenses of the offering are $250,000, how many shares need to be sold now?
Data from Previous Problem
The Mudd Stereo Corporation needs to raise $20 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $28 per share and the company’s underwriters charge an 8 percent spread, how many shares need to be sold?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
Question Posted: